TNAG-1610-FCO40-22132-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 227

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quota a sufficient balance of home ownership and rental flats

will be built to meet the demand for each. In this way the number of people re-housed will not be reduced and the chance of success of applicants under the present Home Ownership Schemes

will be improved.

9.

In addition,

Government

will introduce a Home

Purchase Loan Scheme, which will offer eligible applicants the

option of an interest-free down payment loan to help them buy a

new flat in the private sector. It will complement the existing assisted home purchase schemes and will increase the options open to those wishing to purchase their own homes. By stimulating re-development of older and under-developed private sites, it should also increase the choice of location for prospective purchasers. These increased opportunities for home purchase should increase the upward mobility of sitting tenants and in so doing release rental flats for the more needy and increase the speed at which they can be rehoused. Each loan represents one rental flat made available for allocation. As such it is a replacement for Government's building subsidy

rather than a double subsidy to the recipient as has been

suggested by some who have commented on the scheme.